[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR760.3]



[Page 680]

 

                       TITLE 12--BANKS AND BANKING

 

            CHAPTER VII--NATIONAL CREDIT UNION ADMINISTRATION

 

PART 760_LOANS IN AREAS HAVING SPECIAL FLOOD HAZARDS--Table of Contents

 

Sec. 760.3  Requirement to purchase flood insurance where available.



    (a) In general. A credit union shall not make, increase, extend, or 

renew any designated loan unless the building or mobile home and any 

personal property securing the loan is covered by flood insurance for 

the term of the loan. The amount of insurance must be at least equal to 

the lesser of the outstanding principal balance of the designated loan 

or the maximum limit of coverage available for the particular type of 

property under the Act. Flood insurance coverage under the Act is 

limited to the overall value of the property securing the designated 

loan minus the value of the land on which the property is located.

    (b) Table funded loan. A credit union that acquires a loan from a 

mortgage broker or other entity through table funding shall be 

considered to be making a loan for the purposes of this part.